Transcription
RecommerceESG Industry BookDecember 2021Strictly private and confidential
DEFINITIONDEFINITION“The foundation of recommerce is the concept of the circular economy — an economic system that is aimed at eliminatingwaste and driving the continual use of resources. In fashion, this means ensuring clothing is durable, rather than disposable”In this report, the Recommerce market is split into 3 main verticals:123FASHION &ACCESSORIESMEDIA &ELECTRONICSFURNITURE2
WHY ARE WE SO EXCITED ABOUT umers areprioritizingsustainability, surgingdemand for moresustainable shoppinghabits and productsSizeable marketsupported by strongunderlying mega trendsand driving the growthof the e-commerceindustrySociety is moving awayfrom the make-takewaste system towards acircular design,fostering reuse andrecyclingFew large playersoperating together with amyriad of smallercompanies which displaystrong complementaritiesyet lacking scaleGCA Altium combinesexperiences across theentire value chain fromend-of-life/refurbishing,to D2C e-commerce andrecommerce76% 120bn7725Of 1st time second-handshoppers plans to increasespending on used itemsMarketopportunitySDGs1addressedIPOs in the recommercespace in 20212European consumer & ecommerce3, recommerce andcircular IT transactions recentlyNotes: 1) Sustainable Development Goals, 2) from 01 February 2021 to 31 October 2021, 3) 1 year from 30 April 2020 to 30 April 2021 based on total number of completed transactionscategorised as ‘Consumer and e-commerce’. Sources: MergerMarket, ThredUp3
1Presentation of Houlihan Lokey and GCA Altium
HOULIHAN LOKEY AND GCA ALTIUM COMBINED ARE THE GLOBAL #1 M&A BOUTIQUEThe global #1 M&A boutique1 TOTAL EMPLOYEESCOMBINED REVENUECOMBINED MARKET VALUEOFFICES LOCATIONS2,200USD 2.3BNUSD 8.0BN38Based on 2020 announced transaction volume, a combination of Houlihan Lokey and GCA Altium will create the #1 Global Technology M&A Advisor, further strengthen ourleadership in U.S. M&A, and make us a leading advisor across Global, European and Asian M&ATech M&ACFR M&AUS M&AGlobal M&AEurope M&A#1#2#1#1#2 with trusted relationships with founders and companies in the space3Notes: 1) By market cap, 2) 2021 forecast, 3) MPB5
FULL COVERAGE ACROSS SUSTAINABLE AND CIRCULAR BUSINESSES FORCONSUMERSPRODUCT AS ASERVICESUSTAINABLECONSUMER nnovative lease/hire modelsto enhance asset productivityand deliver superiorcustomer solutionsThrough upcycling,sustainable materials, orresponsible supply chain andoperationsPlatform with full services to enableproduct life extension (incl. repair,refurbishment, remarketing, reverselogistics, remanufacture)Business modelshelping customersto buy and sellproducts6
GCA ALTIUM CREDENTIALS – E-COMMERCE & RECOMMERCE TRANSACTIONSE-commerce related transactionsRecommerce related transactionsOngoing sellsideRefurbishmentand sale ofused consumerproducts23EU Consumer &e-commerce deals1Dedicated Internet &e-commerce coverage1st7M&A advisor for consumer& e-commerceEU recommerce dealsover the last 24 months21stDedicated recommerceteam based in CHM&A advisor forrecommerceNotes: 1) 1 Year from 30 April 2020 to 30 April 2021 based on total number of completed transactions categorized as ‘Consumer and ecommerce’, 2) 2 years from 01 October 2019 to 01 October 20217
2Market trends and update
THE SHIFT TO THRIFT: COVID-19 PROPELS AN ALREADY SURGING SECOND-HAND MARKETDISRUPTED SUPPLY CHAINS1Covid-19 posed significant challenges for supply chains globally, as lockdowns slowed theflow of raw materials and finished goods, consequently affecting manufacturing. As aresult, more consumers turned to thrifting, a habit they plan to keep74%Of organizations facedshortage of criticalparts/materials due toCovid-1917%1Decline in householdfinal consumptionexpenditure in Europedue to Covid-1942% Of consumers will spendmore on second-hand inthe next 5 years 13bnCompanies extra investment by week on technology during Covid-19 750bnWill be budgeted for theCircular economy EUAction PlanBUDGET CONSCIOUSNESS2Consumers changed their spending habits as an effect of Covid-19. Tightened householdbudgets led to more cost-conscious consumers turning towards recommerce and resalealternatives, as people still consume goodsENVIRONMENTAL AWARENESS3Consumers’ growing attention to sustainability issues surge demand for quality overquantity. Strongly driven by younger generations, consumers wish to reduce landfill anddisplace GHG emissions from manufacturing products out of virgin materialsINVESTMENTS IN TECHNOLOGY AND INNOVATION4The pandemic has pushed companies over the technology tipping point, as new strategiesand practices are needed to stay competitive in an ever-changing online environment. Tobuild customer trust, resellers are investing in new tech such as quality control &authentication toolsGOVERNMENTS PUSHING FOR CIRCULAR ECONOMY5To accelerate the transition towards circular economy the EU Action Plan maps outlegislative proposals on waste, including targets for landfill, reuse, and recycling to bereached between 2030 and 2035Note: 1) In Q2 2020Sources: Capgemini, Eurostat, ThredUp, KPMG, European Commission9
A WORLD ENDURING A WASTE AND ECONOMIC CRISIS DUE TO LINEAR CONSU MPTIONFashion & AccessoriesElectronics & MediaFurniture406bnEUR of value missedper year in landfill55bnEUR of value missedper year in landfill360bnEUR of value missedper year in landfill85%of all textiles goesinto landfills eachyear80%of e-waste is notproperly collected &recycled80%of furniture wastegoes into landfill eachyear10%of all total humanity’scarbon emissions3.7%1of total humanity’scarbon emissions40%“This sector has sat on its hands and is waybehind other industries”“Rare earth elements being mined are crucialcomponents [ ], but [ ] hazardous to extract”“Years of producing cheap clothes using cheaplabor has created an unsustainable scenario”of waste produced bythe furniture industrycontains raw materialsTAKE-MAKE-WASTE SYSTEM NEGATIVELY IMPACTING 7 SDGs Most waterintensiveindustries 35’000 childrenare used as laborin mines andfactoriesImproper wastemanagementdilutescommunitiesSupply of 20out of 54 rareearth and materials is criticalImmense Co2footprint frommanufacturingindustryToxic waste spillover to marinebiodiversityDeforestation,erosion, loss ofbiodiversity causedby industriesNote: 1) Carbon footprint from electronical devices and the internet. Sources: Environmental Protection Agency, European Parliament,World Economic Forum, Global E-waste monitor, Furn360, Recycle Track Systems, Forbes, The New Republic, Statista, UNITAR, E3SConferences, BBC10
SOLUTIONS AND CIRCULAR IMPACT OF RECOMMERCEFashion & AccessoriesElectronics & Media53Mt Co2 emissionsdisplaced buying usedinstead of new apparel inthe last decade95%of disposed clothingitems could have beenrecycled or refurbished2040Launch of own resaleplatform in 2021 andcommitment to becomingclimate positive by 2040“In 2021, we see circularity moving from the fashionfringes towards centre stage”Furniture1.6Mt Co2 per year could besaved by extendinglifetime of all notebooksin the EU with one year16xlower carbon footprintbuying used furnitureinstead of new ones80%of all e-waste could havebeen recycled orrefurbished80%of all disposed furniturecould have been recycledor refurbished2030Commitment to becomingcarbon neutral for itssupply chain andproducts by 2030“Re-using materials, adapting supply chains, andchanging consumer perceptions will be [ ] key toensuring a circular transition”2030Launch of buybackscheme in 2021 andcommitment to becomingcarbon positive by 2030“.if resale takes off, it could provide an attractivealternative to all the cheap, disposable furniturethat has become so widespread”TAKE-MAKE-REUSE SYSTEM POSITIVELY CONTRIBUTES TO 7 SDGs Efficient use ofwater when reusingrather thanmanufacturing newLower costof productionthrough productiveutilization of inputsPositiveemployment effectswith circulareconomyReuse materialslowers threataround supply andfinite resourcesReduce Co2footprint throughrefurbishment,reusage, recyclingProtect marinebio-diversityfrom hazardousactivitiesMinimizedeforestation,erosion, loss ofbiodiversitySources: Environmental Protection Agency, European Parliament, World Economic Forum, Global E-waste monitor, Furn360, RecycleTrack Systems, Forbes, The New Republic, Statista, UNITAR, E3S-Conferences, BBC11
RAISING AWARENESS TO THE WASTE CRISISConsumption of second-hand has received considerable attention and shoppers plan to shift more spend on used items 45% 40%53%76%1 IN 3Of millennials and gen Zsay they refuse to buyfrom non-sustainablebrandsOf millennials and gen Zshoppers have shoppedsecond-hand apparel inthe past 12 monthsOf millennials and gen Zsay they will spend moreon second-hand in thenext 5 yearOf 1st time second-handshoppers plans toincrease spending onused itemsCustomers say they caremore about wearingsustainable apparel thanbefore the pandemic resulting in an increase of sustainability reporting to help customers understand how their fashion habits contribute to climate changeCustomers value the possibility to quantify the environmentalimpacts of their purchasing habitsMore and more recommerce companies are addingsustainability stats through their platform to help customersunderstand their positive environmental impact and makeeducated purchasing decisionsTo do so, companies must undertake a complete lifecycleassessment of their productsSources: ThredUp, rebuyThredUp adds the ecoimpact of choosing usedover new on everysingle itemOn all devices, rebuyadds the quantity ofe-waste saved comparedto new devices12
SUBSTANTIAL MARKET OPPORTUNITY – A NEW DYNAMIC EXPECTED TO REMAINFashion & AccessoriesElectronics & MediaFurniture2025 Market Size2025 Market Size2025 Market SizeEUR 1.9tnEUR 609.0bnEUR 610.6bnEUR 65.5bnEUR 44.1bnEUR 14.7bnTraditional apparelSecond-hand apparelResale market is expected to grow 11x faster thanthe broader retail clothing sector by 2025“Developed markets may see even greatergains, and some online resale players couldpotentially experience 100% year-on-yeargrowth”Traditional CE & mediaSecond-hand CE & mediaTraditional furnitureSecond-hand furnitureSecond-hand CE & media market is expected togrow 4x faster than the traditional CE & mediamarket by 2025Second-hand furniture market is expected to grow4x faster than the traditional furnituremarket by 2025“Refurbished electronics products haveshown a significant benefit for bothconsumers and sellers. As there’s anincreasing awareness [ ], there is highermarket demand”“But now they’re thriving and giving the fastfashion industry a run for its money. It’s onlya matter of time before the same thinghappens with furniture”Note: Resale market shares are assumed constant over the next 5 yearsSources: ThredUP, Statista, BCG, European Business Review, Fast Company, PR Newswire13
LARGE COMPETITIVE LANDSCAPE WITH DIFFERENT BUSINESS MODELS14
CASE STUDIES – INTEGRATED FASHION RECOMMERCE PLATFORMTrove & The Renewal WorkshopThe branded reseller processTROVE Helping retailers to start their own recommerce initiatives Founded: 2012 HQ: Brisbane, USA Employees: 200 Provides white-label technology and end-to-end operations thatpower circular shopping for premium and luxury brand Enables brands to take back items from customer’s closets whilemaintaining control of their own brand equity and owning theircustomer experience, data and relationships Raised a total of EUR 110m over 5 rounds. Last funding ofEUR 66.0m from a Series D round led by G2 Venture PartnersBrand-specific onlinestorefront or sharedmarketplaceZero waste system that recovers thefull value out of what has alreadybeen created as a way of servingcustomers, partners and planetBrands & retailersBRAND PARTNERSTHE RENEWAL WORKSHOP Renewed products for brands Founded: 2015 HQ: Oregon, USA Employees: 40 Takes discarded apparel and textiles from top brands and turnsthem into renewed products, upcycling materials or feedstock forrecycling Items are sold back to brands or through The RW’s own website Data is collected on everything that flows through the system and isshared with partners to help them in improving the production Raised a total of EUR 12.4m over 3 rounds. Last funding of EUR 5.1mfrom a Series A round led by Rubio VenturesBRAND PARTNERSRenewed apparel& textilesTHEBRANDEDRESELLERPROCESSDamaged, returned, orexcess inventoryRefurbisherSort-clean-repairUpcycle &recycleProduct andsustainability data1Note: 1) Data is collected on everything that flows through the system and is given back to the brand partners to help them improve theproduction and design of future products. Sources: Company website, Crunchbase15
3Industry dynamics and landscape
RECOMMERCE IS THE NEW E-COMMERCERecommerce: A flourishing e-commerce trendTHE CONTINUED GROWTH OF E-COMMERCERECOMMERCE ON THE SURGEIn EURtnIn EURbn2x6.3133.6faster than the e-commercemarket by 2025MARKETSIZE3.6Resale is expected to grow46.81.324.32015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20252015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Following a 25.7% surge in 2020 to EUR 3.6tn, global e-commerce willcontinue to rise and take up more retail market share over the next 5years reaching EUR 6.3tn in 2025 (representing 24.5% of totalretail sales)Recommerce opportunity is too big to ignore it and traditionale-commerce players are embracing the recommerce trend and startinggetting involved in reselling their second-hand products directly throughtheir own resell programs and through acquisition of recommerce platformsLululemon Like New ProgramRichemont acquired WatchfinderFarfetch Second LifeZOZO acquired YutoriSources: Statista, eMarketer, ThredUpThe recommerce market is expected to triple in the next 5 years, reachingEUR 134bn in 2025. Resale’s projected growth is driven by the increasingeasiness to sell online and acceptance of resale model by newenvironmentally conscious customersBoth millennials and Generation Z are embracing the concept of purchasingsecond-hand goods. 45% of millennials and Gen Z refuse to purchase frombrands and retailers that are not sustainable and 53% of them say they willspend more on seconhand in the next 5 yearsInvestments (M&A transactions and private placement) and IPOs arebooming in the recommerce space2021IPOs17
RECOMMERCE CONTINUES TO BOOM AMID COVID -19FASHION&& ACCESSORIESACCESSORIESFASHIONJUN. 2021: GOAT SERIES FEUR 3.1bnEUR 166mValuationMoney raisedInvestor leadMAY. 2021: VINTED SERIES FEUR 3.8bnEUR 250mValuationMoney raisedInvestor leadMAR. 2021: VESTIAIRE COLLECTIVE SERIES HEUR 850mEUR 178mValuationMoney raisedInvestor leadELECTRONICS& MEDIAFASHION& ACCESSORIESAUG. 2021: REFURBED SERIES Bn.a.EUR 45mValuationMoney raisedEUR 157mValuationMoney raisedInvestor leadDEC. 2020: STOCKX SERIES EEUR 2.4bnEUR 235mValuationMoney raisedInvestor leadJUN. 2021: 1STDIBS IPOEUR 98mInvestor leadOffer amountMAY 2021: BACK MARKET SERIES DEUR 2.6bnEUR 276mValuationMoney raisedInvestor leadn.a.EUR 60mValuationMoney raisedInvestor leadn.a.EUR 4mValuationMoney raisedn.a.EUR 59mMoney raisedInvestor leadn.a.EUR 8mValuationMoney raisedn.a.EUR 85mMoney raisedInvestor leadInvestor leadSEP. 2020: CHAIRISH SERIES Bn.a.EUR 28mValuationMoney raisedSEP. 2020: ATRENEW1 SERIES E ValuationInvestor leadSEP. 2020: CONJURE SEEDAPR. 2021: MPB SERIES DValuationExchangeMAY 2021: KAIYO SERIES AAPR. 2021: GROVER SERIES BFEB. 2021: WALLAPOP SERIES GEUR 690mFURNITUREFASHION& ACCESSORIESInvestor leadMAY 2020: FERNISH SERIES An.a.EUR 13mValuationMoney raisedNotes: Post-money valuation, exchange rate of 0.85 (USD/EUR ) applied, 1) formerly known as AihuishouSources: MergerMarket, Crunchbase, PressInvestor lead18
PLAYERS CLASSIFICATION BY VERTICALSFASHION &ACCESSORIESELECTRONICS& MEDIAFURNITURE1Notes: Non-exhaustive list of recommerce players , 1) MPB19
ACQUISITION RATIONALES OVERVIEW (1/2)Acquisition rationalesSelected relevant acquisitionsACQUIREDGEOGRAPHICEXPANSIONSERVICES OFFERINGEXPANSIONPRODUCTS OFFERINGEXPANSIONACQUIREDACQUIREDDescription: Germany-based consumerelectronics recommerce companyDescription: Brazil-based company operatingan online marketplace for trading ofhandcrafted goodsDescription: Bulgaria-based online retailer ofsecond-hand fashion operating in ninemarkets across Central and Eastern EuropeRationale: Expand Foxway’s recommerceoperations in GermanyRationale: Establish a foothold in LatinAmerica where Etsy does not have ameaningful customer baseRationale: Accelerate ThredUP's growthplans in EuropeMay. 2021Jun. 2021Jul. 2021ACQUIREDACQUIREDACQUIREDDescription: UK-based online retailer ofpre-owned luxury watches both online andthrough its seven boutiquesDescription: Estonia-based provider oftechnology-reuse in electronic equipment byrenovating and reselling used IT equipmentDescription: UK-based company thatoperates in mobile phones lifecyclemanagementRationale: Support Richemont’s growthstrategy by entering the fast-growing marketfor second-hand timepiecesRationale: Enable Foxway to offerrefurbishment services though end-of-lifesolutionsRationale: Enhance TES’s offer in the mobileretail space for consumer takebacks andrecommerce salesJul. 2018Oct. 2019Aug. 2020ACQUIREDACQUIREDACQUIREDDescription: US-based online marketplacethat sells new and second-hand sneakers andstreetwearDescription: US-based online marketplace forcontemporary furniture brands and interiordesignersDescription: US-based e-retailingmarketplace dedicated to buying and sellingnew, used, and vintage musical instrumentsRationale: Benefit from Stadium Goods’brand, access to supply and team with astrong knowledge of luxury streetwearRationale: Expand Chairish reach beyond theantique and vintage categoryRationale: Enable Etsy to expand into a newvertical and to create growth opportunitiesDec. 2018Sources: CapitalIQ, MergerMarketJan. 2019Jul. 201920
ACQUISITION RATIONALES OVERVIEW (2/2)Acquisition rationalesSelected relevant DDescription: US-based retail and e-commerceconsignment of rare and expensivesneakersDescription: Japan-based company operatinga fashion e-commerce website andapplicationDescription: Germany-based company thatoffers refurbishing services and remarketingsolutionsRationale: Create the sneakers secondarymarket’s biggest player and foster expertisesharingRationale: Strengthen Yahoo Japan’se-commerce business and help Zozo competewith rivals such as Amazon and RakutenRationale: Increase offering by adding 250,000new items to the platform which will makeChairish the biggest pure-play marketplaceFeb. 2018Sep. 2019Sep. OW-HOWACQUIREDDescription: US-based provider of a peer-topeer marketplace designed to sell children’sfashionDescription: India-based company engagedin online e-retailing of consumer productsDescription: UK-based company operating amarketplace allowing users to buy/sellsecond-hand clothes and accessoriesRationale: Expand in the kids verticalknowing that the Poshmark communitywants to buy and sell for their whole familyRationale: Allow eBay and Flipkart to reacheven more consumers around the worldRationale: Extend Etsy market opportunity tothe resale sector serving the Gen Z audienceOct. 2016Apr. 2017ACQUIREDACQUIREDJun. 20214ACQUIRED5Description: US-based company providing asocial mobile application that connectspeople with fashionDescription: US-based online marketplacethat resell clothing and accessories frommainstream brands such as Zara & GapDescription: UK-based technology platformfor the global luxury fashion industryRationale: Enable Rent The Runway tobenefit from the talent and technology of GoTry It OnRationale: Enable eBay to use Twice'stechnology and know-how to help powereBay Valet, an assisted-selling serviceRationale: Enable Farfetch’s consumer toleverage JD's logistics, internet finance, technology capabilities & social media resourcesJun. 2013Jul. 2015Jun. 2017Notes: 1) Z Holdings owns Yahoo! Japan, 2) 50.1% stake, 3) Indian business of eBay, 4) Minno (operating as Twice), 5) undisclosed stakeSources: CapitalIQ, MergerMarket21
STRATEGIC ACQUIRERS OVERVIEW – RECOMMERCESources: CapitalIQ, MergerMarket22
FINANCIAL INVESTORS OVERVIEW – RECOMMERCEMost active financial investors in the recommerce space since 2018EuropeFinancials investorsUSARecommerce companies with funding1 round1 round4 rounds1 roundFinancials investors1 roundRecommerce companies with funding2 rounds1 round1 round3 rounds3 rounds2 rounds1 round3 rounds3 rounds2 rounds1 round1 round3 rounds1 round2 rounds1 round1 round3 rounds1 round1 round1 rounds1 round3 rounds1 round2 rounds1 round2 rounds1 round1 round1 round2 rounds1 round1 round1 round1 round1 round2 rounds3 rounds1 round2 roundsSources: CapitalIQ, MergerMarket, Crunchbase23
CASE STUDIES – 2 LEADERS IN THE RECOMMERCE MARKETVestiaire Collective – Leading marketplace for reused luxury fashion productsFounded: 2009Headquarter: ParisTotal funding amount: EUR 584mEmployee: 500 Series C of EUR 15mRationale: Expand activities onthe European market startingwith GermanySeries E of EUR 58mRationale: Break into newmarkets in the Asia Pacificregion and strengthendistribution platformSeries G of EUR 59mSeries I of EUR 178mRationale: Launch directshipping service1 in the US andexpand in Japan and Koreathrough Korelya Capital1.3Rationale: Invest in technology,develop tech functions, enternew markets and expand inexisting marketsMaximilianBittnerWorld’s leading marketplace of pre-owned fashionitemsAllows users to buy and sell luxury pre-owned fashionproducts & accessoriesSep. 2015Jun. 2019Sep. 2013Mar. 2021Jan. 2017Series D of EUR 33mApr. 2020Series F of EUR 40mRationale: Accelerateinternational roll-out with afocus on Europe and the UnitedStatesSep. 2021Series H of EUR 178mRationale: Launch of newtechnology solutions and keepexpanding internationally20.7Rationale: Support VestiaireCollective’s continued globalexpansion plansMaximilianBittner3BackMarket – Leading marketplace for refurbished electronicsFounded: 2014Headquarter: ParisTotal funding amount: EUR 447mEmployee: 480 Series A of EUR 7mRationale: Increase geographicfootprint, broaden servicesoffering and diversify productofferingSeries B of EUR 41mRationale: Further expandcapabilities in North Americaand scale up the teamSeries C of EUR 110mSeries D of EUR 274mRationale: Consolidate coremarkets4, scale up qualitycontrol efforts and introducenew logistics and repair servicesRationale: Consolidate businessand build on its position as theleading marketplace inrefurbished electronicsMay. 2020May. 20212.5World’s leading marketplace for refurbishedelectronics goods, including smartphones, laptops,tablets, headphones & gaming consolesServes more than 5m customers across 13 countriesMay. 2017Jun. 2018Notes: 1) Direct shipping means the buyer receives his items directly from the seller, 2) expansion plan in Taiwan,the UAE, Brazil, Mexico, Israel, Saudi Arabia, India, Thailand, Indonesia and Malaysia, 3) Vestiaire Collective’s CEO,4) starting with the US, UK and Gemany. Sources: CapitalIQ, MergerMarket, Crunchbase, Press ReleaseXPre-moneyvaluation (EURbn)24
4Valuation benchmarks
TRADING COMPARABLES REVIEWSource: CapitalIQ as of 25/11/202126
SELECTED TRANSACTIONS IN THE RECOMMERCE SPACE BY VERTICALSEV: n.a.EV/Sales: n.a.EV/EBITDA: n.a.EV: n.a.EV/Sales: n.a.EV/EBITDA: n.a.EV: n.a.EV/Sales: n.a.EV/EBITDA: n.a.EV: EUR 276mEV/Sales: n.a.EV/EBITDA: n.a.EV: n.a.EV/Sales: n.a.EV/EBITDA: n.a.EV: EUR 245mEV/Sales: 7.8xEV/EBITDA: n.m.EV: n.a.EV/Sales: n.a.EV/EBITDA: n.a.EV: n.a.EV/Sales: n.a.EV/EBITDA: n.a.Notes: EV/EBITDA 0.0x considered not meaningful (“n.m."), 1) Letgo USASources: CapitalIQ, MergerMarketAug. 2021EV/EBITDA: n.a.EV: EUR 109mJul. 2019EV/EBITDA: n.a.EV: n.a.EV/Sales: n.a.EV/Sales: 2.2xEV/EBITDA: 11.3xEV: n.a.Mar. 2019EV/EBITDA: n.a.EV/Sales: n.a.EV/Sales: n.a.EV/EBITDA: n.aEV: n.a.Jan. 2019EV/Sales: n.a.EV: EUR 175mJun. 2018EV: EUR 212mFurnitureEV/Sales: n.a.EV/EBITDA: n.a.EV: EUR 1,135m(94.0% stake)EV/Sales: 0.5xEV/EBITDA: 117.6xEV: n.a.Feb. 2018EV/EBITDA: n.a.Oct. 2020EV: n.a.EV/Sales: n.a.Oct. 20191Jul. 2019EV/EBITDA: n.aJun. 2019EV/Sales: 23.2xOct. 2015EV: EUR 1,331mJun. 2021Mar. 2020Dec. 2018Jun. 2018Feb. 2018Jun. 2017Electronics & MediaJul. 2021Fashion & AccessoriesEV/Sales: n.a.EV/EBITDA: n.a.AcquirerTarget27
RELEVANT RECOMMERCE FINANCING TRANSACTIONSRecommerce funding landscapeNumber of financing roundsSelect financing transactionsTotal funding amount (EURm)1313107496541,1908428291,110 in debt1746587478447Amount(EURm)Funding todate2 (EURm)Post-moneyval. (EURm)Jun. 20211664193,141May 20212854342,750May 20212504783,750Mar. 2021178563845Feb. 2021157164690Dec. 20202345872,359Nov. 20205101,360n.aSep. 2019255842n.aAug. 2019149258553Mar. 201965215425Aug. 2018170447n.aJul. 201898303n.aJul. 20181287461,318Deal Date434419CompanyLead/SelectedinvestorNote: Exchange rate of 0.85 (USD/EUR) applied, 1) including convertible notes, 2) as of 12/10/2021, 3) private convertible note, 4) creditfacility. Source: Crunchbase28
5Contact us
GET IN TOUCHSigurd Solheim, Managing Director Leading our ESG and Circular Economy efforts from Switzerland Prior to joining GCA, Sigurd was a founding partner of Stella EOC where he focusedon ESG, Recommerce and Circular IT transactionssigurd.solheim@gcaaltium.com 41 79 309 4074 Served with the Norwegian Special Forces and graduated from the Norwegian Schoolof Management and AudenciaThomas Egli, Managing DirectorJules Wurlod, ESG Director Co-Head of Digital, Media & Internet practices Europe ESG Director at GCA Altium Switzerland Prior to joining GCA, Thomas worked with Deutsche Bank in Frankfurtand London on cross-border M&A More than 10 years of experience in Business and Sustainability,notably as a management consultant at the Boston Consulting Group Graduated from the University of St. Gallen Holds a PhD in environmental economics from the Graduate Institutein GenevaThomas.Egli@gcaaltium.com 41 43 499 43 41jules.wurlod@gcaaltium.com 41 79 664 53 27Louis Lopez, AnalystJean-Louis Bélot, Associate Associate at GCA Altium Switzerland Analyst at GCA Altium Switzerland 4 years of M&A at GCA Altium and strong track record in the CircularIT industry Joined the team as an Analyst in 2020 with experience in M&Aadvisory Graduated from HEC Lausanne, as well as extra studies at theUniversity of St-Gallen in Switzerland Holds a MSc in Finance from Esade Business School and undertookuniversity studies at HEC Lausannejean-louis.belot@gcaaltium.com 41 79 108 71 31louis.lopez@gcaaltium.com 41 79 173 34 36SELECTED RELEVANT EXPERIENCES30
CONTACT USBirmingham UKFrankfurt GermanyLeeds UKLausanne SwitzerlandLondon UKSuite 201, Somerset House37 Temple StreetB2 5DP Birmingham 44 121 393 5066Taunusanlage 9-10603 29 Frankfurt 49 69 204 34 6410Suite 19, 4th floorOne Park RowLS1 5AB Leeds 44 161 250 3577Avenue du Théâtre 11005 Lausanne 41 43 499 43 43One Curzon StreetW1J 5HD London 44 20 7484 4040Manchester UKMilan ItalyMunich GermanyParis FranceStockholm Sweden9th Floor, No.1 Spinningfields1 Hardman SquareManchester M3 3EB 44 161 250 3577Piazza San Fedele 420121 Milan 39 02 76 01 73 40Possartstrasse 1381679 Munich 49 89 413 1203, rue la Boétie75008 Paris 33 1 73 29 71 55Biblioteksgatan 8111 46 Stockholm 46 10 209 88 55Tel Aviv IsraelZurich SwitzerlandNew York USASan Francisco USADelhi India94 Yigal Alon St., 16th Floor6789140 Tel Aviv 972 3 522 3663Klausstrasse 48008 Zurich 41 43 499 43 43640 Fifth AvenueNew York, NY 10019 1 212 999 7090One Maritime Plaza,San Francisco, CA 94111 1 415 318 3600Vasant SquareLevel 3 Vasant Square MallPocket V, Sector B, Vasant KunjNew Delhi 110070 91 99674 96720Ho Chi Minh City VietnamMumbai IndiaFukuoka JapanKyoto JapanNagoya JapanLevel 21, Saigon Centre Tower 267 Le Loi, Ben Nghe Ward, District 1Ho Chi Minh City 84 28 7302 8169146, 14th Fl, Maker Chambers VINariman PointMumbai 400021 91 22 6106 9000Aqua Hakata 5F5-3-8 Nakasu, Hakatu-kuHakata City, Fukuoka 810-0801 81 092 287 95463F KRP BIZ NEXT, Kyoto ResearchPark Bldg. 493 Chudoji Awatacho, Shimogyo-ku,Kyoto, 600-881517th Floor, Nagoya Lucent Tower6-1 Ushijimacho, Nishi-kuNagoya-city, Aichi 451-6017Osaka JapanShanghai ChinaSingaporeTokyo JapanHerbis Osaka Office Tower5-25 Umeda 2-chome, Kita-kuOsaka-shi, Osaka 530-0001 81 6 6456 4306B02, 22F, Tower 3, Jing An Kerry Ctr1228 Yan’an Road MiddleShanghai 200040 86 21 3107 60569 Temasek Boulevard#41-04 Suntec Tower 2Singapore 038989 65 6455 3051Pacific Century Place Marunouchi11-1 Marunouchi 1-Chome,Chiyoda-kuTokyo 100-6230 81 3 6212 710031
6Appendix
TRADING PEERS (1/3)Source: Capital IQ as of the 25/11/202133
TRADING PEERS (2/3)Source: Capital IQ as of the 25/11/202134
TRADING PEERS (3/3)Source: Capital IQ as of the 25/11/202135
COMPARABLE TRANSACTIONS (1/5)Selected recommerce M&A transactions in the Fashion & Accessories space since 2014DateTargetCountryBusiness DescriptionAcquirerEV/Revenue EV/EBITDAEV/EBIT7/26/2021Remix GlobalBulgariaBulgaria-based online retailer of second-hand l-based company operating an online marketplace for trading of handcrafted goodsEtsyn.a.n.a.n.a.6/2/2021DepopUnited KingdomUK-based company operating an online marketplace that allows users to buy and sell theirsecond-hand clothing and accessoriesEtsy23.2xn.a.n.a.4/6/2021RocksboxUnited StatesUS-based operator of a jewelry rental subscription platformSignet Jewelersn.a.n.a.n.a.3/25/2021SaversUnited StatesUS-based second-hand merchandise retailerAres Managementn.a.n.a.n.a.3/23/2021Joonggonara(95.0% Stake)South KoreaSouth Korea-based second-hand goods trading platform
5 HOULIHAN LOKEY AND GCA ALTIUM COMBINED ARE THE GLOBAL #1 M&A BOUTIQUE Tech M&A #1 US M&A #1 Global M&A #1 Europe M&A #2 The global #1 M&A boutique1 Based on 2020 announced transaction volume, a combination of Houlihan Lokey and GCA Altium will create the #1
